2 weeks Ago By NDTV Profit News
VST Tillers Tractors Ltd. expects to sustain its operational Ebitda margin at around 13% in the second half on the back of positive sentiment after a good monsoon, Chief Executive Officer Anthony Cherukara has said. On Monday, the Bengaluru-based company had released earnings for the second quarter of the current financial year.
For the quarter under review, the company has reported a year-on-year rise of 22.7% in net profit at Rs 44.8 crore versus Rs 36.
5 crore a year ago. Revenue rose 1.8% to Rs 283 crore in Q2 of the ongoing fiscal compared to Rs 278 crore in the same quarter last year.
The company's operational Ebitda was down 12.4% YoY at Rs 37.8 crore in the second quarter of FY25 against Rs 43.
1 crore in the year-ago period. VST Tillers Tractors' operational Ebitda margins were at 13.3% in Q2 against 15.
5% a year ago. Talking to NDTV Profit about the growth outlook for H2, Cherukara said that VST Tillers Tractors is aiming for a margin of 11–13% for FY25. “More towards 13% rather than 11%, as we have seen in our Q2 results.
The green shoots of growth have already been seen in Q2. The October numbers are really good. We expect the numbers in the next two quarters to be good,” he said.
On being asked if the company will be able to clock a Rs 1,500-crore revenue in FY25, Cherukara added, “Whether we get to the specific number of Rs 1,500 crore is quite difficult to say at this point in time. But we hope for the best in H2.” Cherukara said that revenue growth expected in H2 will come from across the three key categories—small farm machines, tractors, and distribution—the company operates in.
“All three segments have different baselines. However, the importance or impetus given in terms of growth is the same. We expect all the segments to grow,” he noted.
Green shoots of recovery are also happening in rural India, with monsoons playing out normally this year, the CEO explained. “This has led to an overall positive sentiment and the cropping has also been larger than the previous year. All these augur well for Q3 and Q4.
So, we are expecting a very good H2 this year,” he said. Shares of VST Tillers Tractors Ltd. on Tuesday gained 4.
8% to touch an intraday high of Rs 4,782.45 apiece on the NSE. The stock closed 2.
42% higher at Rs 4,675.30 apiece against benchmark Nifty's gain of 0.91%.
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